The Asian Development Bank (ADB) will provide 400 million dollar loan assistance to Bangladesh to combat the effects of climate change. This information was given in a press release on ADB’s website this Friday. The loan was approved as part of the Inclusive Development Program to combat climate change as part of the Paris Climate Agreement.
Bangladesh is one of the most vulnerable countries in the world due to the adverse effects of climate change. The average annual financial loss from climate change is about $3 billion. The loan is part of ADB’s $7 billion climate-resilient inclusive development program.
Under ADB’s loan program, Bangladesh will be supported in transitioning to a low-carbon economy, gender equality, digitization, and creating income-generating programs for the poor and vulnerable to make Bangladesh climate sustainable.
Aminur Rahman, Chief Economist for Public Management in ADB’s South Asia Region, said, ‘The impact of climate change is seriously disrupting Bangladesh’s growth and poverty alleviation. Bangladesh is strongly committed to meeting this challenge and ADB is ready to assist Bangladesh.’
Apart from this, the organization has promised to give ADB 5.5 billion dollars to Bangladesh between 2024 and 2026. Half of this amount ie 50 percent is for dealing with the effects of climate change.
ADB provides support to almost all major sectors of Bangladesh’s economy. Earlier, they have provided loan assistance to Bangladesh in various sectors including agriculture, natural resources, infrastructure, energy, transport, education, water supply.
Last June, ADB approved a loan of 400 million dollars for Bangladesh. ADB approved this loan for Bangladesh to reform the domestic resource mobilization program, increase the efficiency and effectiveness of government spending, and ensure that small business owners, especially women entrepreneurs, have access to innovative financing at low interest rates.